Aite Group: Vendor Competition In Direct Billing Seen Growing

Biller direct payment adoption continues to grow while competition heats up among vendors of the multi-channel option, according to a new report from Aite Group.

The Boston-based think firm based its conclusion on interviews it conducted in late 2010 and early this year with a group of major payment presentation technology vendors.

Aite Group now estimates that nearly 26% of consumers will make payments at billers’ websites by 2013, which it says is directly proportional to a drop in payments by mail, which it predicts will account for 31% of bill payment volume by then, down from 33% it predicted for this year.

In addition to biller site and checks in the mail, consumers also are using mobile, phone, direct debit, financial institution website and in-person channels to pay their bills, and competition is intensifying, the report said.